June jobless rates rise in all Arkansas metro areas

BusinessFort SmithNews on the Wire

by The City Wire staff ([email protected]) August 3, 2011 1:01 pm 70 views 

All eight metro areas in or connected to Arkansas saw June jobless rate increases compared to May and compared to June 2010, according to a U.S. Bureau of Labor Statistics report released Wednesday (Aug. 3).

The rates in Wednesday’s report are preliminary and subject to change.

The negative report follows the July 22 report that Arkansas’ jobless rate jumped to an estimated 8.1% in June, a level not seen since June 1987. Also, Arkansas was just one of eight states to post an unemployment rate increase in June compared to June 2010. June marks the 28th consecutive month the Arkansas jobless rate has been above 7%.

The Oklahoma jobless rate was 5.3% in June, unchanged from May, and down from the 7% in June 2010. The U.S. rate during June was 9.2%, up from 9.1% in May and down from 9.5% in June 2010.

During June, the lowest metro jobless rate was 6.9% in Northwest Arkansas and the highest rate was 11% in Pine Bluff. However, the Northwest Arkansas metro area saw one of the largest jobless rate increases (0.8 percentage points), with the number of unemployed jumping from 14,163 in May to 15,925 in June. The last time the region posted more unemployed was February 2010 (16,408).

Michael Pakko, chief economist and state economic forecaster with the Institute for Economic Advancement at the University of Arkansas at Little Rock, said a high jobless number in June “is a recurring seasonal phenomenon.”

In the previous four years, the highest monthly jobless rates were posted in January/February (2010), December (2009), December (2008) and August (2007).

FORT SMITH METRO PICTURE

The number of unemployed in the Fort Smith metro area was an estimated 11,318 in June, up 7.8% from a revised 10,494 in May, and up 2.76% compared to June 2010. The number of employed in the metro area during June was 124,205, down 0.76% compared to the 125,163 employed in the area during May, and down 0.27% compared to June 2010.

The size of the metro workforce in June was 135,523, down slightly from 135,657 in May and statistically unchanged from 135,547 in June 2010. The workforce is down from the June 2007 high of 140,542. Shrinkage in the workforce reflects several factors, including people leaving the area to find work elsewhere or those who have simply quit looking for work.

Fort Smith’s manufacturing sector employed an estimated 21,400 in June, up from a revised 21,300 in May, and lower than the 21,700 in June 2010. June marks the third consecutive monthly employment gain in the sector. However, employment in the sector is down 30.29% from more than a decade ago when January 2001 manufacturing employment in the metro area stood at 30,700.

Jobs in the Trade, Transportation and Utilities sector — the region’s largest job sector —  totaled 24,400 in June, down from a 24,700 in May and up from the 24,200 the sector employed in June 2010. Employment in the sector is off from the high of 25,700 posted in December 2007.

Employment in the region’s tourism industry continues a positive trend, with June employment reaching an estimated 9,500. The sector employed 9,500 in May and 8,900 in June 2010. Sector employment is coming close to a high of 9,800 in August 2008.

NATIONAL NUMBERS

Unemployment rates were lower in June than a year earlier in 224 of the 372 metropolitan areas, higher in 127 areas (Compared to higher in 85 areas in May and 54 areas in April), and unchanged in 21 areas, noted the BLS report. Also, 12 areas recorded jobless rates of at least 15%, while nine areas registered rates of less than 5%.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
June 2011: 6.9%
May 2011: 6.1%
June 2010: 6.6%

Fort Smith
June 2011: 8.4%
May 2011: 7.7%
June 2010: 8.1%

Hot Springs
June 2011: 8.4%
May 2011: 7.9%
June 2010: 8%

Jonesboro
June 2011: 8.2%
May 2011: 7.5%
June 2010: 7.6%

Little Rock-North Little Rock-Conway
June 2011: 7.5%
May 2011: 7%
June 2010: 7.1%

Memphis-West Memphis
June 2011: 10.9%
May 2011: 10.1%
June 2010: 10%

Pine Bluff
June 2011: 11%
May 2011: 9.9%
June 2010: 9.6%

Texarkana
June 2011: 8.1%
May 2011: 7.4%
June 2010: 7.7%

FORT SMITH METRO AREA HISTORY
Past annual average unemployment rates
2010: 8.2%
2009: 7.9%
2008: 4.8%
2007: 5.3%
2006: 4.9%
2005: 4.5%
2004: 5.2%
2003: 5.5%
2002: 5%
2001: 4.2%
2000: 3.7%